What is Actual Cash Value?
Actual Cash Value refers to the monetary worth of a damaged or stolen property just before the loss took place. It is the amount equal to the replacement cost after depreciation is subtracted. Thus, it stands for the value at which the property can be resold and it is usually less than the amount required to replace it.
The insurance companies mostly evaluate the property both before and after the loss which ultimately is the deciding factor in the amount the insurer is liable to pay for the damage. In case of automobiles, the actual cash value is assessed as per the quotations from other such vehicles available in the market.